A Milestone Is a Typical Measuring Point Used When Establishing

question 24

Multiple Choice

A milestone is a typical measuring point used when establishing cost control.Which of the following does NOT accurately describes the use of cost control milestones?​ 

• A) Project managers can use their cash flow projections to determine the funding needed to reach each milestone. 
• B) Project managers and sponsors often decide the number of milestones jointly. 
• C) Milestones are often identified in the project charter. 
• D) Milestones are developed during risk planning.

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Definitions:

Break Even

The point at which total costs and total revenues are equal, meaning there is no profit or loss.

Operating Leverage

A measure of how revenue growth translates into growth in operating income, indicating the ratio of fixed costs to variable costs.

Contribution Margin

The amount remaining from sales revenue after variable expenses have been deducted, indicating how much contributes to the fixed costs and profits.

Scatter Diagram

A graph used in statistics to visually display and assess the possible relationship between two numerical variables.